CLIENTS WE SERVE
Limited Company
01
Partnership
02
Sole Traders
03
Contractors
04
Self Employment
04
Limited Liability Partnership
04
Landlords
04
Freelancers
04
Charities
04
LIMITED COMPANY
A limited company is a business structure registered at Companies House, making it a separate legal entity from its owners. This means the business can operate in its own name, enter into contracts, and take on financial responsibilities without impacting the personal assets of its owners.
Limited Liability Protection
The main advantage is limited liability. This protects the owners by limiting their financial responsibility to the value of their investment or any personal guarantees they’ve made. It ensures that, in the event of failure, the owners’ personal assets remain safe.
Types of Limited Companies
-
Limited by Shares: Owned by shareholders and managed by directors. Shareholders’ liability is limited to the amount they invest in the company.
-
Limited by Guarantee: Owned by guarantors (often used for non-profits) and managed by directors. Guarantors’ liability is limited to a nominal amount agreed upon.
Owners and Directors In a ltd company, the same person can act as both the owner (shareholder) and the director. This allows you to run it alone or with other people, depending on your business needs.If you’re looking for expert help with your finances, get in touch today. We can assist with accounting, tax filings, and ensuring compliance with UK regulations.
Management Reporting
PARTNERSHIP
A partnership is a type of business structure where two or more individuals share ownership, responsibilities, and profits. Unlike a limited company, a partnership is not a separate legal entity. This means the partners are personally responsible for the business’s debts and obligations.
Each partner contributes to the business whether through capital, skills, or labour and in return, they share in the profits (or losses) according to the terms set out in a partnership agreement. This agreement isn’t legally required, but it’s highly recommended to outline how the business will be run and how profits, duties, and liabilities will be divided.
There are two main types of partnerships in the UK:
-
Ordinary Partnership – All partners are equally responsible for managing the business and personally liable for any debts.
-
Limited Partnership or LLP (Limited Liability Partnership) – In an LLP, each partner’s liability is limited to the amount they invest. LLPs must be registered with Companies House.
If you’re running or setting up a partnership and need expert accounting support, our specialist Partnership Accountants are here to help get in touch today.
Management Reporting
SOLE TRADERS
A Sole Trader is an individual that owns and runs a business. A Sole Trader is fully liable for any debts and contracts the business has and from a legal point of view there is no difference between the business and the individual.
Many people often start trading as a Sole Trader because it is the simplest way to begin and trade, then progress to operating through a limited company later on when the business starts to make reasonable profits.
Get in contact today if you are looking for a Sole Trader Accountant to help with your Sole Trader Accounting.
Management Reporting
CONTRACTORS
Contractors are individuals who provide services to clients under specific terms. They tend to operate via their own limited companies and are not employees for a larger firm or business.
A Contractor is responsible for their own ‘business’ dealings and has control of how and when they do their work. They would either be employed through an Umbrella Company for the purpose of paying them (and paying their taxes) or have their own Limited Company or be a Sole-Trader and pay their own taxes.
A limited company is a small business set up by an individual, where they provide their services on behalf of the company.
SELF EMPLOYED
A self-employed business, in the context of UK individuals, refers to someone who operates their own business and is responsible for its success or failure. These individuals work independently, rather than being employed by a company, and manage their own income and expenses.
They have the freedom to choose their work, set their rates, and manage their business operations, but they are also responsible for ensuring they comply with legal and tax obligations. Unlike employees, self-employed individuals do not receive benefits such as paid holidays or sick leave, and they must manage their own financial planning, such as pensions and savings.
LIMITED LIABILITY PARTNERSHIP
A Limited Liability Partnership (LLP) is an alternative legal structure that was introduced in 2001 by the LLP Act 2000. It is an ideal set-up for the types of professions that normally operate as a traditional partnership, such as solicitors, accountancy firms and dental practices.
An LLP shares the same characteristics as a normal partnership structure in terms of tax liability, internal management and the distribution of profits, but it provides reduced financial liability, or ‘limited liability’, to each partner. Traditional partnerships place the full burden of business debts upon the partners. LLPs place reduced financial liability upon the partners, which is a more desirable option for many people. It is similar to the financial protection offered to limited company owners.
An LLP is a great alternate structure for any business that currently operates as a traditional partnership with a small and consistent number of members who each make comparable contributions and draw similar profits.
LANDLORDS
A Landlord is an individual who rents out a property they own under a lease or a licence that is shorter than seven years.
If you receive rental income that exceeds your total expenses, allowances and reliefs, then you are required to pay tax on this income by submitting a tax return. If your rental property generates a loss, you may want to voluntarily disclose it because this allows you to make use of the loss in the future should the property turn profitable.
Renting Property – Landlord Accounting
Furnished holiday Lets – Landlord Accounting
Letting rooms in your home
FREELANCERS
Freelancer are individuals who provide services to clients under specific terms. They tend to operate via their own limited companies and are not employees for a larger firm or business.
A Freelancer is responsible for their own ‘business’ dealings and has control of how and when they do their work. They would either be employed through an Umbrella Company for the purpose of paying them (and paying their taxes) or have their own Limited Company or be a Sole-Trader and pay their own taxes.
A limited company is a small business set up by an individual, where they provide their services on behalf of the company.
CHARITIES
A Limited Liability Partnership (LLP) is an alternative legal structure that was introduced in 2001 by the LLP Act 2000. It is an ideal set-up for the types of professions that normally operate as a traditional partnership, such as solicitors, accountancy firms and dental practices.
ternate structure for any business that currently operates as a traditional partnership with a small and consistent number of members who each make comparable contributions and draw similar profits.